There is a certain convenience to using debit cards and credit cards, but convenience comes at a price. By going on a cash-only diet you can save far more than you might expect.
Benefits of Cash-Only
When you have to use cash on hand to pay your bills, make purchases, and handle other financial obligations, all you can spend is what is in your hand. You know that once it’s gone, it’s gone. Knowing that there isn’t a backup plan can help you curb your spending, but it can also get you discounts.
Retailers love that you can rely on debit or credit to buy what you want. For them, it means you may spend more than you would in cash. At the same time, they have to pay processing fees for every transaction. That’s why some merchants offer discounts when you pay with cash. And, you never have to worry about your information being stolen or being charged more than what you were supposed to be. You are right there to handle any price issues immediately. It’s also easier to get refunds on your purchases because you don’t have to wait for the money to appear in your account.
Sometimes the cost of convenience is a direct one. When you do need cash, you have to pay for it at the nearest ATM. It’s not just the ATM fee either. You financial institution might charge a fee as well. You can pay a lot of your bills online, but you are likely to have a convenience fee there, too.
It may be far more convenient to leave your saving in the bank and use your cash for everything else. At the very least, it can help you monitor your spending in real time. Take out what you need for that pay period, and leave the rest in the bank.